All three of the GCC's largest BNPL markets now regulate buy now, pay later. Qatar issued its rules in August 2023, the UAE in September 2023 and Saudi Arabia in December 2023, and licensed providers operate in each. The frameworks share the same aims: bring BNPL inside licensing, protect consumers and stop household debt building up unseen. But they differ in how they are structured, and a single product design will rarely fit all three.

Why regulators acted

BNPL grew quickly in the Gulf thanks to young, digitally active populations, high smartphone use and strong merchant demand for higher checkout conversion. The concern was that it created consumer credit without the licensing, affordability checks and conduct rules that apply to other lending. Regulators chose to bring it inside the perimeter rather than restrict it.

Saudi Arabia: licensed BNPL companies

SAMA issued its Rules for Regulating Buy-Now-Pay-Later Companies in December 2023, after licensing the first providers under earlier arrangements. BNPL providers need a SAMA licence and minimum capital of SAR 5 million. The rules cover internal policies, information security, financial crime controls, consumer protection and the limits of permitted credit activity, and require at least half of a company's staff to be Saudi nationals when it starts operating. Tamara and Tabby are among the licensed providers.

UAE: short-term credit rules

The CBUAE regulates BNPL as short-term credit under a framework issued in September 2023. It covers interest-free credit of up to 12 months for buying goods or services, without collateral. Only banks, finance companies, their agents, or companies holding a restricted finance licence from the CBUAE may offer it. Each borrower's total short-term credit is limited to AED 20,000 or three months' verified net income, whichever is lower; providers must check the borrower's credit report for limits above AED 5,000; and total fees and charges may not exceed 30% of the amount borrowed.

Qatar: dedicated BNPL licences

Qatar Central Bank issued its Buy-Now-Pay-Later Regulations in August 2023 and began taking licence applications the following month. Anyone offering BNPL in Qatar needs a QCB licence. Products must be interest-free, with repayment over no more than 12 months; providers may charge a fixed service fee, must carry the full credit risk themselves, may lend only unsecured, and may not lend cash. Customers must be Qatar residents aged 18 or over. Sharia-compliant products need approval from a Sharia adviser. QCB has since granted licences to BNPL providers.

How the three compare

  • Licensing: all three require a licence. Saudi Arabia and Qatar license BNPL companies specifically; the UAE uses bank, finance company or restricted finance licences.
  • Product limits: the UAE and Qatar both cap tenor at 12 months and require products to be interest-free; the UAE also caps total credit per borrower and total fees.
  • Credit checks: the UAE requires a credit report check above AED 5,000; Saudi Arabia and Qatar require providers to manage credit risk and protect consumers, and providers should expect to use credit bureau data.
  • Local presence: Saudi Arabia sets capital and Saudi staffing requirements, which favour firms with a real presence in the Kingdom.

What payment firms and merchants should do

First, map every BNPL product or partnership that reaches consumers in the GCC, wherever the contract is booked. Second, check that each BNPL partner holds the right licence in every market where it is offered at checkout; acquirers and PSPs that distribute an unlicensed product take on conduct risk. Third, localise the product: tenor, fees, credit limits and disclosures need to follow each market's rules. Fourth, treat BNPL as regulated consumer credit in board reporting and risk management, not as a checkout feature.